Accruals accounting: Difference between revisions
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Accruals accounting means accounting by applying the accruals concept of including revenues, profits and the associated costs incurred while earning them the same accounting period's profit or loss account or income statement. | Accruals accounting means accounting by applying the accruals concept of including revenues, profits and the associated costs incurred while earning them the same accounting period's profit or loss account or income statement. | ||
For example, the total cost of an asset with a long useful life is spread for accounting purposes over the whole of its useful life. | |||
Contrasted with the cash basis of accounting, which takes account only of receipts and payments in the accounting period. | Contrasted with the cash basis of accounting, which takes account only of receipts and payments in the accounting period. | ||
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* [[Accrual]] | * [[Accrual]] | ||
* [[Accruals concept]] | * [[Accruals concept]] | ||
* [[Assets]] | |||
* [[Consistency]] | * [[Consistency]] | ||
* [[Disaggregation]] | * [[Disaggregation]] | ||
Revision as of 05:45, 28 November 2019
Financial reporting.
Accruals accounting means accounting by applying the accruals concept of including revenues, profits and the associated costs incurred while earning them the same accounting period's profit or loss account or income statement.
For example, the total cost of an asset with a long useful life is spread for accounting purposes over the whole of its useful life.
Contrasted with the cash basis of accounting, which takes account only of receipts and payments in the accounting period.
